UPDATE 1-Fifth & Pacific sees Juicy Couture fixes in late 2013

Reuters Staff

2 Min Read

* CEO blames merchandising, “other issues” for weak Juicy performance

* Same-store sales rose 27 percent at kate spade

* Same-store sales fell 2 percent at Juicy Couture

Jan 14 (Reuters) - Fashion company Fifth & Pacific Cos Inc said fixes at its Juicy Couture brand would come late this year and in 2014 after the retailer reported disappointing sales despite deep discounts offered during the holiday shopping season.

For the fourth quarter, same-store sales rose 27 percent at kate spade and 3 percent at Lucky Brand, the company said on Monday. Same-store sales fell 2 percent at Juicy Couture, according to preliminary results.

Shares rose to $13 in premarket trading from Friday’s close at $12.84 on the New York Stock Exchange.

Juicy, a once-hot brand known for its velour track suits with an urban look, has struggled to find favor again with U.S. shoppers.

Chief Executive William McComb said merchandising and “other issues” at Juicy Couture weighed on the company’s performance, despite a stronger show at kate spade and Lucky Brand.

“I am optimistic about delivering sizeable growth in 2013 at kate spade and Lucky Brand, while recognizing that the fixes at Juicy Couture will come late in 2013 and into 2014,” the CEO said in a statement.

The company, formerly known as Liz Claiborne Inc, said it expects earnings before interest, taxes, depreciation and amortization of $63 million to $68 million for the fourth quarter and $100 million to $105 million for the full year, which it said is at the low end of its forecast.

For 2013, the company forecast EBITDA of $120 million to $150 million, and same-store sales growth at a low teens percentage rate for kate spade and mid- to high-single-digit rate for Lucky Brand. For Juicy Couture, it said same-store sales should be flat to slightly negative.